Do you have Debt Problems?

1. Multiple Credit Cards Debts

• Do you charge everyday purchases because you do not have cash? if so your credit cards have become a necessity rather than a convenience.
• Are you at or over the limit on most or all of your credit cards?
• Do you make only the minimum payment each month on your credit cards or are you missing monthly payments?
• Do you charge as much or more each month as you pay on each card?
• Do you ever take cash advances on credit cards to make payments on other cards or loans that are overdue?

2 .Bank Loans and Overdrafts

• Has your bank refused to give you a loan to consolidate your debts? The interest a bank charges on a loan is usually much less than the interest charged on a credit card. If the bank has turned you down they are “telling you” that you are too far in debt and they do not feel that you have the ability to repay the loan (if they give it to you). If the banks ask for a co-signer, be careful, as the bank will look to that person to pay the loan if you are unable to do so.
• Bank overdrafts are supposed to be for very short periods of time – usually until the next payroll date. If you are continually using the overdraft for day-to-day bills you have left yourself with no ability to pay for an emergency bill i.e. – your car needs brakes, tune up, your kids need money to join a sport team. etc.

3. Other Borrowing

• Have you ever had to borrow from payday loan companies, your family or friends just to “make it.” to the next payday.
• Have you been able to repay these loans?
• Have these “short term” loans ever turned into “long term” loans?
• Has your family ever forgiven these loans.

4. Lawsuits

• Are you constantly receiving notices about your overdue accounts?
• Are you having difficulty in making your monthly payments?
• Are your overdue debts being referred to collection companies and lawyers?
• Are you being sued?
• Are your wages being garnished?

5. The Bottom Line

• Do you know what you owe?
• Do you know how much you owe and to whom you owe it to?
• Do you fight with your family over money problems?
• Are the money problems causing mental stress?
• Do you have physical or other medical problems that are caused by stress?

6. The Options

• Your rich uncle can die and leave his estate to you.
• Your lottery tickets wins – finally.
• Your family bails you out.
• You move out of Canada and do not leave a forwarding address.

And for the rest of us

You and your spouse get a second job, reduce your spending and spend the next few years paying off your debts.

Your consult with an experienced professional to work out a plan to resolve your financial problems. This may involve making an offer to your creditors to pay them a portion of the debt owing to them.

This is called a Proposal and usually involves the creditors agreeing to stop all interest charges and reducing their debt up to 70% and agreeing to accept the 30% settlement by way of monthly payments over a period of time (usually about five years). In extreme circumstances the only available option may be to file an Assignment in Bankruptcy.

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